Trustfulness in models, conceptual realism

Excessive or even blind trust in monetary policy models as simplified mental representations of reality. – It is undisputed that there is no faith in models, especially in the relevant departments of the institutions and central banks. After all, they know from experience that the behavior of economic agents is virtually impossible to predict when different circumstances coincide, as is characteristic of a market economy. – See data uncertainty, monetary policy, forward-looking, equilibrium models, dynamic-stochastic, hurricane shocks, models, monetary policy, model risk, pandemic, shocks, structural, structural uncertainty. – See ECB Monthly Bulletin, May 2013, p. 77 (policy article on the reliability of model-based projections; many reviews; references).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/